• 2020 April 3 09:09

    MABUX: Bunker market this morning, Apr 03

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) continued slight downward movement on April 02:

    380 HSFO: USD/MT 241.01 (-0.29)
    VLSFO: USD/MT 298.00 (-3.00)
    MGO: USD/MT 385.95 (-5.57)


    Meantime, world oil indexes rose on Apr.02 after U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.

    Brent for June settlement increased by $5.20 to $29.94 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $5.01 to $25.32 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $4.62 to WTI. Gasoil for April delivery gained $4.25.

    Today morning global oil indexes have turned into downward evolution again.
     
    Trump said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a “few days” - lowering production and bringing prices back up. Russia in turn said that no one has launched any talks about a potential new oil-production deal to replace the OPEC+ format. The current prices of Brent Crude in the mid-$20s are well below Saudi Arabia’s fiscal break-even price of $80 a barrel oil, below the break-evens of nearly all U.S. shale production, and below the Russian breakeven price, too. With markets facing 15 million barrels per day (bpd) of oversupply in the second quarter and storage maxing out in April, extraordinary curtailments of oil supply will be needed in May and Jun.

    The double supply-demand shock of the past month threw the oil futures market into super contango. One of the most requested commodities right now is storage—be it onshore or offshore—as commodity traders and oil majors are increasingly looking to profit from the super contango in several months’ time.  Apart from the traders who manage to secure storages, the other big winners of the super contango market structure are set to be tanker owners and operators, as rates for chartering tankers for storage are soaring. Over the next few months, the tanker companies will be the biggest winners from the double market shock as traders rush to secure what’s left of available crude carriers for storage in the super contango structure.

    U.S. oil producers may soon have access to federal oil storage space to alleviate the glut that is threatening to overwhelm existing private storage capacity. The Energy Department is considering the option, and an official announcement could come later. The storage problem is becoming critical on a global scale. As per some forecasts, if storage continues to fill up, oil prices could fall close to zero. This zero-space available could happen in months, if not weeks. The U.S. strategic petroleum reserve (SPR) has a maximum capacity of over 713 million barrels of crude. The U.S. created the SPR in the wake of the Arab oil embargo following the 1973 Arab-Israeli war, as the U.S. sought to avoid a repeat of the fuel shortages that the embargo caused at the time. There U.S. has some 635 million barrels in storage across the SPR facilities.

    China is moving forward with plans to buy up oil for its emergency reserves after price crash. Beijing has asked government agencies to quickly coordinate filling tanks and using financial tools like options to lock in current low prices. In addition to state-owned reserves, Beijing may use commercial space for storage as well, while also encouraging companies to fill their own tanks. The initial target is to hold government stockpiles equivalent to 90 days of net imports, which could eventually be expanded to as much as 180 days when including commercial reserves. China is also planning to announce the fourth batch of strategic reserve sites. The expansion project has the dual advantage of creating larger emergency reserves and as an economic stimulus project to spur construction opportunities as the country recovers from the coronavirus.

    Indian Oil Corp (IOC), the country’s biggest refiner and fuel retailer, has declared a force majeure on oil imports from some of its top oil suppliers, including four key suppliers from Middle East: Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates (UAE). It’s not only India that is not rushing to buy ultra-cheap Saudi crude because of plunging demand: some refiners in Europe, including supermajor Shell, are set to take less crude from the Kingdom in April amid plummeting demand in the coronavirus pandemic.

    In the meantime, Saudi Arabia and the UAE are still pretending to flood European and Asian markets with crude. The Kingdom’s supply has now officially surpassed the 12 million bpd mark, compared to 9.7 million bpd. While some analysts remain doubtful that the kingdom is able to produce anywhere close to 12 million bpd, Riyadh is already resorting to drawing crude from its inventories to boost exports, and Saudi authorities have instructed Aramco to ramp up supply to 13 million bpd. UAE has also vowed to increase production to 4 million bpd, one million barrels per day higher than it produced under the OPEC+ output deal. Iraq also said on Mar.31 that it would raise production by 200,000 bpd to 4.8 million bpd.

    We expect bunker prices may rise today in a range of plus $ 15-25 for IFO and plus $ 3-15 for MGO. At the end of the session, a downtrend may resume.




2021 July 26

18:04 IPCSA ‘honoured’ to join the World Customs Organization’s Private Sector Consultative Group
17:57 M. Skuodis: expansion of the southern part of the Port of Klaipėda has potential to attract new cargo and investments
17:35 Sri Lanka Ports Authority with ILO support commences training for seafarers
17:14 Vitol Bunkers adds first offshore location to its USGC and Caribbean supply offering
16:20 Operation on delivery of 111-meter long column for Amur GCC is underway
16:03 Mobile harbour crane investment to further improve cargo handling efficiency at Port of Newcastle
15:13 TotalEnergies signs renewable power purchase agreement with Air Liquide
14:59 RF Government suggests establishing free customs area on Kuril Islands
14:34 The COVID 19 has strong impact on the port of Helsinki
13:44 DP World and Rosatom sign agreement for Northern Transit Corridor
13:36 FSUE Atomflot and Murmansk Marine Biological Institute sign cooperation agreement
12:57 Average spot market price for Russian M100 product fell to RUB 24,400 pmt
12:38 Onezhsky Shipyard lays down fourth serial crab catching ship for Russian Crab Group
12:05 Mitsubishi Shipbuilding launches ceremony for the first of two large multi-role response vessels being built to order for the Department of Transportation in the Republic of the Philippines
11:59 Saint-Petersburg and Kronshtadt hosted Russia's Main Naval Parade on RF Navy Day
11:04 Port of Antwerp implements a Yard Opening Time scheme for all containers
10:40 Wharf One ready for new business at Port of Mackay
10:10 Admiralteyskie Verfi shipyard launches CT-192 series trawler named Mekhanik Sizov
09:58 Huntington Ingalls Industries authenticates the keel of Legend-class national security cutter Calhoun
09:35 Crude oil prices go down due to coronavirus risks
09:17 Baltic Dry Index as of July 23
09:08 Ascenz, the Singapore-based GTT Smart Shipping Company, launches an innovative solution to improve the bunkering process
08:31 Grimaldi extends to Zeebrugge its freight link between Belgium and Ireland
07:56 Sembcorp Marine delivers three wellhead and riser topsides and bridges to TotalEnergies EP Denmark

2021 July 25

14:58 USCG, partners medevac mariners off Kauai
14:51 WinGD first to deliver space-saving on-engine NOx aftertreatment
13:51 Tackling the fuel conversion conundrum
12:37 Panama renews maritime transport agreement with China
11:39 ABP Southampton appoints Head of Property
10:54 Agreement on Elbe River navigability signed

2021 July 24

15:02 Union Pacific reports 2Q 2021 results
13:29 Major £10M project aims to unlock untapped potential of ocean renewable energy fuels
12:37 LR: Turning to technology to tackle container ship fires
11:14 Survitec enhances lifeboat inspection solution to deliver savings and flexibility for ship operators

2021 July 23

18:27 EBRD and Ukraine boost low-carbon hydrogen development
18:03 ROSATOM and GDK Baimskaya LLC sign agreement to jointly supply energy to Baimsky plant
17:58 Van Oord signs contract with the Spanish energy company Iberdrola for the Baltic Eagle offshore wind farm
17:50 Chantiers de l’Atlantique completes installation of EGCS on three MSC Cruises vessels
17:41 ROSATOM and Aeon Corporation agree to Arctic shipping cooperation
17:32 RWE, Shell, Gasunie and Equinor sign a declaration of intent on the AquaSector project
17:18 Rosatom and DP World sign Cooperation Agreement
16:55 RosGeo eyes exploration of solid mineral deposits in the Persian Gulf
16:32 Learn the latest global LNG trends with LNGcon 2022
16:30 ROSATOM and Moscow State University’s Marine Research Centre sign cooperation agreement on environmental impact assessment in Arctic
16:07 Rosatom expects transit cargo flow along NSR to reach 20-30 million tonnes per year by 2030
15:39 ROSATOM and Nornickel sign supplementary agreement on icebreaker accompaniment
15:01 Sea Port of Saint-Petersburg handled 4.1 million tonnes of cargo in H1’21, up 12% YoY
14:36 Recovery of investments in offshore geological exploration not expected by RosGeo before 2022
14:14 Wärtsilä to provide thrusters for two Chinese wind farm turbine installation vessels
13:40 RosGeo: Deposits in shallow waters and estuaries should be taken into account when developing Arctic resources
13:12 A deep sea mineral riser system reviewed by ABS in an industry first
12:48 Nornickel set to expand and upgrade Dudinka port
12:11 Maersk changes the logistics landscape in Bulgaria and launches intermodal weekly service connecting Burgas to Plovdiv and Sofia
12:09 Ningbo Containerized Freight Index rises in July 2021
11:43 Vietnamese Navy ships arrived in Vladivostok to participate in Russian Navy Day celebration
11:11 GTT receives orders for the tank design of two new LNG сarriers
11:07 Integrated drill of emergency response teams conducted at CPC Marine Terminal near Novorossiysk
10:45 Alexei Rakhmanov: USC saved nearly RUB 18 billion in 2021 through cost optimization
10:24 Baltic Dry Index as of July 22
10:06 Crude oil market sees downward price correction